2014 (11) TMI 314

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....al service tax of Rs. 97,55,318/- with interest has been demanded. In addition, on the ground that the appellants did not pay service tax on the land owners share of apartments constructed by them in respect of three projects during the period from June 2004 to March 2008, service tax of Rs. 37,29,463/- has been demanded with interest and penalty also has been imposed. 2. Learned counsel submits that the entire demand is time barred in respect of land owner's share. As regards the demand in respect of apartments constructed and sold to individual customers, he would submit that the tax became liable to be payable only from 01/07/2010 and therefore the appellant is not at all liable to pay service tax. This submission was made on the gro....

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....plex as such. He relies on the decision in the case of Krishna Homes vs. CCE, Bhopal [2014-TIOL-402-CESTAT-DEL]. Paragraph 9 of this decision is relevant and is reproduced below:-                9. In view of the above, though in view of the Apex Court judgment in the case of M/s Larsen & Toubro Limited and others vs. State of Karnataka & others (supra) , the agreements entered into by a builder/promoter/developer with prospective buyers for construction of residential units in a residential complex against payments being made by the prospective buyers in instalments during construction and in terms of which the possession of the residential unit, is to be handed over ....

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....ment to sell in entered into. Absolute sale deed is entered into and then services provided. 3. Land owner share absent Land owner share is present 4. Contractors were used to construct the complex No contractors were used.   4. We don't find that the distinction and difference pointed out by the learned AR are relevant. What is required to be examined is whether the services provided is construction of a residential complex or not. Even if there is a transfer of undivided share of land and a separate agreement is entered into for construction of apartment, the agreement would not lead to the service of construction of residential complex but only a part of the complex. This became exigible only after the ins....